Canadian miners accelerating Southern Cone gold projects amidst price surge

As the price of gold continues to break records, climbing to almost US$2,800/oz this week, four Canadian companies will be even more motivated to build their projects in Latin America's Southern Cone in 2025.

Together, these initiatives involve total investments of US$1.65bn and would add nearly 620,000oz/y of output once in operation, according to the BNamericas project database.

Two of them are being developed in Chile and two in Brazil. One of the latter is in the process of being sold.

The project with the largest capex is Kinross Gold's US$1.08bn Lobo-Marte project in Chile’s Atacama region, an extension of its La Coipa operation, which is expected to reach production of 250,000oz this year.

Kinross aims to achieve synergies between the two deposits, which are located 50km apart, maximizing the existing infrastructure and equipment. Lobo-Marte is expected to add nearly 300,000oz/y to La Coipa’s output once construction, expected to start in late 2025, is completed.

Also in Chile, Rio2 is gearing up to start construction on the US$235mn Fenix Gold initiative this year, with development set to continue into next year. The project is expected to establish operations with average production of 91,000oz/y over the first 12 years.

Brazil

In Tocantins state, Cerrado Gold is preparing to develop its US$181mn Monte do Carmo project. However, it is in the process of being sold to Hochschild subsidiary Amarillo Mineração do Brasil for US$60mn.

Cerrado Gold is selling up with the intention of focusing on its gold projects in Argentina, Don Nicolás and Las Calandrias. 

Monte do Carmo is currently in the permitting stage, with construction estimated to begin in March next year. It has forecast output of 95,212oz/y.

Meanwhile, in Maranhão state, Equinox Gold is expanding the Aurizona mine with a development put at US$154mn.

Aurizona is projected to produce approximately 75,000oz this year, and the expansion will add around 20,000oz, helping to achieve a target of 140,000oz/y.

Prices

The current surge in gold prices is generally attributed to inflation concerns, uncertainty surrounding the US presidential election on November 5, as well as tension about a potential serious escalation of the conflict in the Middle East.

Prices have climbed by around 33% so far this year, reflecting investors' inclination to hedge against market volatility and the fluctuating global economy.